Billing Code: 3510-13
DEPARTMENT OF COMMERCE
Notice of Availability of Final Programmatic Environmental Assessment for
Modernization and Expansion of Existing Semiconductor Fabrication Facilities
under the CHIPS Incentives Program
AGENCY: National Institute of Standards and Technology, Department of Commerce.
ACTION: Notice; availability of a Final Programmatic Environmental Assessment and
finding of no significant impact.
SUMMARY: The National Institute of Standards and Technology (NIST) announces the
availability of the Final Programmatic Environmental Assessment (PEA) and finding of
no significant impact (FONSI) for the modernization and expansion of existing
semiconductor fabrication facilities under the CHIPS Incentives Program. The Final
PEA addresses Federal financial assistance under the CHIPS Incentives Program for the
proposed modernization or expansion of existing current-generation, mature-node, or
leading-edge front- or back-end commercial semiconductor fabrication facilities within
existing facility footprints.
ADDRESSES: The Final PEA and FONSI are available for review and download at
https://www.nist.gov/chips/national-environmental-policy-act-nepa.
FOR FURTHER INFORMATION CONTACT: David Frenkel, NIST, telephone
number 240-204-1960, e-mail David.Frenkel@chips.gov.
SUPPLEMENTARY INFORMATION:

NIST prepared the Final PEA in accordance with the National Environmental
Policy Act (NEPA), 42 U.S.C. 4321 et seq., and the Council on Environmental Quality
(CEQ) NEPA implementing regulations, 40 CFR parts 1500–1508. The Final PEA
addresses Federal financial assistance for the proposed modernization or expansion of
existing current-generation, mature-node, or leading-edge front- or back-end commercial
semiconductor fabrication facilities within existing facility footprints (the Proposed
Action).
Background
The Creating Helpful Incentives to Produce Semiconductors (CHIPS) for
America Act in title XCIX of the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (Pub. L. 116-283), as amended by the CHIPS and
Science Act of 2022 (Division A of Pub. L. 117-167) (together, the CHIPS Act or Act)
authorized the CHIPS Incentives Program within the U.S. Department of Commerce.
The Program, which is administered by the CHIPS Program Office (CPO) within NIST,
an agency of the Department, aims to boost American semiconductor research,
development, and production.
The CHIPS Incentives Program Commercial Fabrication Facilities Notice of
Funding Opportunity (NOFO) was originally published in February 2023 and amended in
June 2023. The NOFO solicits applications for the construction, expansion, or
modernization of commercial facilities for the front- or back-end fabrication of leadingedge, current-generation, and mature-node semiconductors; commercial facilities for

wafer manufacturing; and commercial facilities for materials used to manufacture
semiconductors and semiconductor manufacturing equipment, provided that the capital
investment equals or exceeds $300 million. The potential amount available under the
NOFO is up to $38.22 billion for direct funding and up to $75 billion in direct loan or
guaranteed principals. CPO is responsible for completion of the NEPA process before
Federal financial assistance can be disbursed.
Final PEA
The purpose of the CHIPS Incentives Program in this area is to invest in U.S.
production of strategically important semiconductors (“chips”) and ensure a sufficient,
sustainable, and secure supply of older and current generation chips for national security
purposes and critical manufacturing industries. As part of this effort, CPO aims to
increase semiconductor manufacturing capacity and strengthen the security of the U.S.
supply chain via the modernization of semiconductor production. The need for CPO’s
action in this area is to fulfill the agency’s statutory responsibilities under the CHIPS Act,
including the requirements of 15 U.S.C. 4652 to incentivize investment in facilities and
equipment in the United States for the fabrication, assembly, testing, advanced
packaging, production, or research and development of semiconductors, materials used to
manufacture semiconductors, or semiconductor manufacturing equipment.
Under the Proposed Action, CPO would provide Federal financial assistance for
the proposed modernization or expansion of existing current-generation, mature-node, or
leading-edge front- or back-end commercial semiconductor fabrication facilities within

existing facility footprints. Eligible projects would include the replacement or upgrade of
existing fab equipment, the addition of new semiconductor manufacturing equipment,
and the expansion of cleanroom space.
CPO published the Notice of Availability of the Draft PEA for public comment in
the Federal Register on December 27, 2023.1 CPO extended the 30-day public comment
period by two weeks from January 25, 2024, to February 9, 2024.2 CPO considered the
public comments received on the Draft PEA and has responded to comments in Appendix
E of the Final PEA. CPO has made revisions to the PEA in response to comments where
appropriate.
Based on its analysis, CPO has determined that the Proposed Action to provide
Federal financial assistance for the proposed modernization or expansion of existing
current-generation, mature-node, or leading-edge front- or back-end commercial
semiconductor fabrication facilities (or “fabs”) within existing fab facility footprints
normally would not result in significant adverse environmental effects. Thus, preparation
of a programmatic environmental impact statement (EIS) is not required, and CPO is
issuing a FONSI for the Proposed Action.
Authority: This notice is provided pursuant to NEPA, 42 U.S.C. 4336(b)(2), and the
NEPA implementing regulations, 40 CFR 1506.6.
Alicia Chambers,
NIST Executive Secretariat.
[FR Doc. 2024-14844 Filed: 7/5/2024 8:45 am; Publication Date: 7/8/2024]
88 FR 89372 (Dec. 27, 2023).

89 FR 6506 (Feb. 1, 2024).